Tim and Sarah Lawrence are married and file a joint return. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-45-6788, and Debra's Social Security number is 123-45-6787. Tim is self-employed as the sole proprietor of an unincorporated business, and Sarah is a corporate executive. Tim reports the following 2015 income and expenses from his business.

Gross income	$325,000
Business expenses	201,000

Sarah was covered for the entire year by her employer's health insurance policy. Other records related to Sarah's employment provide the following information.

Salary	$145,000
Unreimbursed travel expenses (including $200 of meals)	1,100
Unreimbursed entertainment expenses	500

Other pertinent 2015 information follows.

Proceeds from sale of stock acquired on July 15, 2015 (cost of $12,000), and sold on August 1, 2015	$ 9,800
Proceeds from sale of stock acquired on September 18, 2014 (cost of $5,000), and sold on October 5, 2015	3,800
Wages paid to full-time domestic worker for housekeeping and child supervision	10,000
Interest income received	7,000
Total itemized deductions (not including any potential deductions above)	27,900
Federal income tax withheld	31,850
Estimated payments, Federal income tax	34,000

REQUIREMENTS

Compute the 2017 net tax payable or refund due for Tim and Sarah Lawrence.

Prepare the 1040 U.S. Individual Income Tax Return